| Table C.2 | ||||||||
| LIST OF NEW MEASURES, 2004 | ||||||||
| PARTICULARS | ESTIMATED YIELD | |||||||
| (In million pesos) | ||||||||
| Legislative Measures | ||||||||
| q Indexation of excise tax on sin products 7,000 | ||||||||
| v Restructuring of the excise tax on distilled spirits by having in place a single structure of tax rates for all distilled spirits regardless of raw materials used. | ||||||||
| v Indexation of the current tax brackets and tax rates using cumulative inflation of 36% from 1997 to 2001 to restore the real value of the unit taxes applied to sin products to their January 1, 1997 levels. | ||||||||
| v Indexation of the tax brackets and tax rates biannually thereafter by the amount of cumulative inflation for the two preceding years to ensure that the excise rates track the changes in price. | ||||||||
| v Immediate reclassification of alcohol and tobacco products based on their current net retail price and reclassification of said products biannually thereafter. | ||||||||
| q Restructuring of the excise tax on automobiles 1,420 | ||||||||
| v Aims to address the inequities, distortions, complications and inefficiencies in the taxation of the automobile industry in order to fuel its growth and consequently improve revenue collection. | ||||||||
| v Amends the excise taxation of automobiles by adopting a value-based tax structure in lieu of the current structure based on engine displacement, type of fuel and seating capacity | ||||||||
| q Rationalization of Documentary Stamp Tax 5,000 | ||||||||
| v Imposes a uniform rate of .50% of issue of all debt instruments | ||||||||
| v Imposes only on primary or original issue | ||||||||
| v Removes DST on secondary trading on debt instruments | ||||||||
| v Removes DST on derivative instruments | ||||||||
| v The generic term “debt instruments” is adopted for this purpose | ||||||||
| v Proportional tax rate for short term instruments | ||||||||
| v Imposes DST on evidences of time deposit other than a certificate | ||||||||
| v Provides for the following exemptions; | ||||||||
| · Securities Borrowing and Lending Transactions executed under the Stock Exchange | ||||||||
| · Secondary Trading of equities | ||||||||
| · Derivatives | ||||||||
| · Loan agreements for promissory notes that are intended for personal use and not for business not exceeding P250,000 | ||||||||
| · Assignment or transfer of any mortgage, lease or policy of insurance, or the renewal or continuance of any agreement, contract, charter or any evidence of obligation or indebtedness | ||||||||
| · Fixed income and other securities traded in the secondary market or through an exchange | ||||||||
| · Inter-branch or interdepartmental advances within the same legal entity | ||||||||
| · All forbearances arising from sales or service contracts including credit card and trade receivables | ||||||||
| · Bank deposit accounts without a fixed term or maturity | ||||||||
| · All contracts, deeds, documents and transactions related to the conduct of business of the Bangko Sentral ng Pilipinas | ||||||||
| TOTAL | 13,420 | |||||||